Financial Resource Center

Fraud


3 Student Debt-Relief Options

by Jeremiah Tucker / May 2nd, 2016


Suffocating student loan debt is one of the most serious financial problems facing a generation of Americans. Worse still, it makes student loan borrowers a tempting target for unscrupulous companies.

According to MarketWatch, companies lure in borrowers by presenting themselves as empowered by the government to help lessen their debt burden but are really after easy money.

Often they push borrowers to sign contracts with hidden fees, and make promises they have no intention of delivering on and couldn’t even if they did, such as offering loan forgiveness.

If you’re struggling with student loan debt, here are some better options:

  • Call your loan servicer. Many of the services offered by these student-debt relief programs you can do yourself for free.
  • Check out your student-loan forgiveness options. Depending on the field you work in, you may be eligible for a student loan forgiveness program, and you don’t need to pay a third-party company to enroll you. For federal programs, you can check studentaid.ed.gov to find out if you qualify.
  • Check with your credit union. Your credit union may be able to help you refinance your student-loan debt at a lower rate, depending on the type of loan you have. Even if they can’t, they can point you to credible resources and help you get your other finances under control so your student debt doesn’t feel quite so burdensome.

 

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